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Law Nr. 20,897 modifies Article 34 bis of the Electric Power Services General Law
February 18, 2016


Initially, bill N° 20.897 aimed to extend the protections that had been given to electric concessionaires to cover NCRE developers as long as they were an onerous concessionaire of the Ministry of National Assets. However, in order to encourage the development of NCRE projects, its final text was edited to include the following statement, “for privately owned or third party’s assets” and “by virtue of… any other title”, expanding the entitlement of the property to which this surety applies. Therefore, from now on, any NCRE developer may employ the consignment of adequate surety in order to lift the precautionary measure of provisional suspension according to the terms of article 34 bis.

The only NCRE developers who are excluded from the protection of this article are those that are using indigenous lands with ancestral use, defined in the Convention N° 169 of the International Labor Organization, or lands that belong to agricultural communities referred to in Decree N° 5 of the Ministry of Agriculture of 1967.

Thus, hereinafter the NCRE developer will have the previously granted faculty to the electric concessionaire by Law N° 20,701, to suspend the effects of the injunction through the consignment of a surety enough to cover the eventual demolition of such works, or the compensation of the damages.

Download current text of Article 34 bis Of The Electric Power Services General Law



AUTHORS: Juan Francisco Mackenna, José Miguel Bustamante.



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